REG - Iofina PLC - Interim Results
18/09/2025 07:00
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RNS Number : 7562Z Iofina PLC 18 September 2025
D
18 September 2025
Iofina plc
("Iofina", the "Company" or the "Group")
(AIM: IOF)
Interim Results for the six months ended 30 June 2025
Another strong financial period accomplishing growth plans
Iofina delivers record revenues and iodine production
Iofina plc, specialists in the exploration and production of iodine and
manufacturers of specialty chemical products, is pleased to announce its
unaudited Interim Results for the six months ended 30 June 2025 (the
"Period").
H1 2025 Key financials:
· Record H1 revenue of $29.2m, up 12.3% (H1 24: $26.0m)
· Cost of Sales of $22.8m, up 9.6% (H1 24: $20.8m)
· Gross Profit of $6.3m, up 21.2% (H1 24: $5.2m)
· Adjusted EBITDA(1) of $3.3m, up 43.5% (H1 24: $2.3m)
· Operating Profit of $1.8m, up 63.3% (H1 24: $1.1m)
· Tax Credits Income of $1.8m (H1 24: Nil)
· Profit Before Tax of $3.5m, up 218% (H1 24: $1.1m)
· Net Debt of $0.8m (H1 24: Net Cash $1.1m)
( )
(1) see Note 9 for definition
Business Highlights:
Strategic investing drives healthy balance sheet
· Continued strong product demand, higher iodine production and high
iodine prices above $70/kg led to H1 2025 revenue growth of 12% compared to H1
2024
· Cash was maintained at a healthy level of $6.4m (H1 2024: $5.7m)
after drawings of $4.0m on the bank project loan facility to fund capex
· Net debt was held at $0.8m (H1 2024: net cash of $1.1m) following
capex of $5.3m (H1 2024: $4.7m) with $3.7m spent on construction of IO#11, and
$0.6m spent on landowner leases
· Well-placed to finance our ongoing operational investment program
through a strong cash position and existing loan facilities
Iodine production and sales
· Produced 305.5 metric tonnes ("MT") of crystalline iodine during
H1 2025, a 10.6% increase compared to H1 2024 and within the Company's revised
target range
· Crystalline iodine sales grew by 9% to 208MT, reflecting an
ongoing strong market demand
· The average prices realised (100% iodine equivalent) for sales of
crystalline iodine grew by 11% to $74.27 per kg against the comparable period
(H1 2024: $66.84), but were similar to the prices experienced in H2 2024
· Iodine derivative sales rose 16% to $9.2m (H1 2024: $7.9m)
Outlook
· The Group expects to produce 400-440 MT of crystalline iodine in
H2 2025, now that IO#11 has been fully commissioned, becoming the eighth
IOsorb® plant in production
· Iodine spot price is expected to remain strong and firmly above
$70/kg
· The Board believes the Group remains on track to meet market
expectations for the full year
Recent highlights
· Tax credits of $1.8m included in H1 income in respect of Employee
Retention Tax Credits (ERTC), with the cash received in July and August 2025
· IO#11 came online, producing crystalline iodine in July 2025
· Record monthly iodine production in August 2025 (74.3MT)
Commenting on today's results, Dr. Tom Becker, President and CEO, stated:
"The Group delivered a strong first half performance, despite the impact of
the extreme weather in Q1 affecting the flow of brine water to our IOsorb®
plants. Crystalline iodine production grew by 11% and total sales by 12%,
supported by the ongoing demand for our products and higher iodine prices.
"The Group remains well positioned to continue its expansion plans, utilising
its strong cash generation and banking facilities to invest for growth. IO#11,
which was completed on time and on budget in July, is expected to add 100MT of
crystalline iodine on an annualised basis. With production at this new plant
ramping up, it is expected to make a material contribution to the anticipated
production range of 400-440MT for H2 2025. IO#12 negotiations are progressing
well, as the Company investigates all potential opportunities for new plants.
"As the fundamentals in the iodine market remain strong, we will continue to
execute our established growth strategy to ensure Iofina delivers for its
shareholders."
Enquiries:
Iofina plc
Dr. Tom Becker
CEO & President
Tel: +44 (0)20 3006 3135
Nomad & Broker:
Canaccord Genuity Limited
Henry Fitzgerald-O'Connor/Harry Rees
Tel: +44 (0)20 7523 8000
Financial PR and Media Contact:
Yellow Jersey PR Limited
Charles Goodwin/Shivantha Thambirajah
Tel: +44 (0)7747 788 221/+44 (0)7983 521 488
About Iofina:
Iofina plc (AIM: IOF) is a vertically integrated company that specialises in
the production of Iodine and the manufacturing of specialty chemical products.
Iofina is the second largest producer of iodine in North America and operates
the manufacturing entities Iofina Resources and Iofina Chemical.
LEI: 213800QDMFYVRJYYTQ84
ISIN: GB00B2QL5C79
Iofina Resources
Iofina Resources develops, builds, owns, and operates iodine extraction plants
using Iofina's WET® IOsorb® technology. Iofina currently operates eight
IOsorb® plants in Oklahoma and is consistently using technology and
innovation to improve and expand its operations.
Iofina Chemical
Iofina Chemical has manufactured high-quality halogen speciality chemicals
derived from raw iodine, as well as non-iodine-based products. Iofina
Chemical celebrated its 40(th) anniversary in 2023 as a preeminent
halogen-based specialty chemicals company.
www.iofina.com (http://www.iofina.com/)
INTERIM RESULTS
Business Overview
Iofina plc ("Iofina" the "Company" or the "Group") is the holding company of a
group of companies (the "Group") whose focus is the exploration and isolation
of iodine and the production of halogen-based specialty chemicals. The Group's
business model involves producing a key raw material, iodine, utilising the
Group's technology, at a low cost, and in the most environmentally friendly
way possible. This iodine production provides the Company's customers vertical
integration into high-quality iodine and other halogen-based chemical
products.
The Company is committed to producing its products with minimal environmental
impact. The Group's iodine is isolated from produced water brine streams from
oil & gas production in the United States. By utilising these produced
waste streams to isolate iodine, Iofina is extracting a valuable resource from
streams that would otherwise provide no use or value. Also, by isolating
iodine from these streams, Iofina avoids the additional drilling and mining
environmental impacts of many other iodine producers.
Iofina operates two active business units in the United States. Iofina
Chemical ("IC") develops and produces halogen-based specialty chemicals to
sell these products, along with the Group's crystalline iodine, globally in a
variety of applications. Iofina Resources ("IR") currently operates eight
IOsorb® iodine production plants in two core areas, with five plants in NW
Oklahoma and three plants in Central Oklahoma and is planning to expand by
building additional plants. Iofina's most recent plant, IO#11 was under
construction during the Period and was recently commissioned in July 2025. IR
continues to explore new iodine sources and further develop its proprietary
models relating to iodine and other mineral sources in North America.
Expertise in core halogen technologies, the vertical integration of iodine
into specialty products, diversification with multiple iodine production
plants and numerous specialty halogen-based products, and operating our
businesses with integrity, with a focus on safety and customer satisfaction
are key business tenets for Iofina. The Directors remain focused on the
continued growth of the Group, and the development and implementation of
business strategies for the ongoing improvement of Iofina.
Financial Review
Trading results
Turnover H1 2025 H1 2024
Crystalline Crystalline
Iodine 85% Sales Iodine 85% Sales
MT $m MT $m
Crystalline iodine 208 13.1 191 10.9
Derivatives 107 9.2 94 7.9
Prilled iodine 3.8 2.5
Total iodine sales 315 26.1 285 21.3
Non-iodine 3.1 4.7
Total sales $29.2 $26.0
Sales
Total sales increased by 12% from $26.0m to $29.2m, with total iodine sales up
by 22% from $21.3m to $26.1m. Non-iodine sales decreased by 34% from $4.7m to
$3.1m primarily as a result of a delayed sale of $1.35m that was recorded in
July. Volumes of crystalline iodine sales were up by 9% from 191MT to 208MT.
The average prices realised (100% iodine equivalent) for crystalline iodine
during the period increased by 11% to $74.27 (H1 2024: $66.84 per kg).
Crystalline iodine revenue increased by 20% from $10.9m to $13.1m. Sales of
iodine derivatives were up by 16% from $7.9m to $9.2m, with the addition of a
new animal feed product from January 2025. Derivatives pricing was some 8%
higher than for H1 2024.
Production
Production of crystalline iodine from the Company's seven Oklahoma plants (H1
2024: six plants) was 11% up at 305.5 MT for H1 2025 compared to 276.1MT for
H1 2023. The H1 2025 number includes production from the IO#10 plant, which
commenced production in October 2024. Average production costs per kilogram
included in trading costs of sales were 5% higher than for H1 2024, due to
inflation increases and the effects on plant productivity of exceptionally
cold weather in Oklahoma in the early months of 2025.
Gross profit and EBITDA
Gross profit increased by 22% from $5.2m in H1 2024 (20% of sales) to $6.3m
(22% of sales) in H1 2025. Selling, general and administrative (SG&A)
expenses increased by 7% ($0.2m) from $2.8m in H1 2024 to $3.0m in H1 2025.
Adjusted EBITDA increased by 40% from $2.3m (9% of sales) to $3.3m (11% of
sales) over the same period.
Government subsidies
The US operating subsidiaries recorded net income of $1.8m in respect of
Employee Retention Tax Credits (ERTC) payroll credits under the CARES Act (see
Note 4). This income was received in cash in July and August 2025.
Taxation
The $1.8m of ERTC credits is subject to tax estimated at $0.44m, and the net
benefit to the Group is therefore expected to be in the region of $1.4m. Tax
numbers have been calculated on the basis of legislation in force at 30 June
2025. The One Big Beautiful Bill was signed into law on 4 July 2025. It
includes provisions that are retroactive for 2025 and are expected to result
in a reduction of current tax payable when applied to the results for the
year.
Profit before and after tax
Profit before tax excluding Government subsidies was $1.66m, 56% up on the
comparative figure of $1.06m for the six months to 30 June 2024. Profit after
tax excluding Government subsidies was $1.14m, 87% up on the comparative
figure of $0.61m for the six months to 30 June 2024. Earnings per share
excluding Government subsidies were $0.006, which compares to $0.003 for the
six months to 30 June 2024.
Capital expenditure
Capex for H1 2025 totalled $5.3m compared to $4.7m for H1 2024. It includes
$3.7m related to the construction of the new IO#11 plant, which commenced
production in August 2025 at a total cost of $5.3m, in line with budget. A
further $0.6m was spent on the acquisition of landowner leases for IO#10 and
IO#9.
Cash flow and financing
Adjusted EBITDA for H1 2025 was $3.3m (H1 2024: $2.3m). After working capital
changes, principally a $1.4m increase in inventory, the net cash inflow from
operations was $1.7m (H1 2024: $4.9m). Capex of $5.3m (H1 2024: $4.7m) was
largely financed by drawings of $4.0m on the $10m bank project loan facility.
The overall result was a net cash outflow for the six months of $0.4m (H1 2024
outflow: $0.8m). At 30 June 2025, cash was $6.4m (H1 2024: $5.7m) and net bank
debt amounted to $0.8m, which compares to net cash of 1.1m at 30 June 2024.
Details of the Group's bank debt facilities are set out in Note 6.
Review and Outlook
The first half of 2025 was a successful Period for the Group, marked by record
revenues and iodine production. EBITDA also increased year-over-year in the
Period by over 40%. Over the past few years, the Company has demonstrated its
commitment to executing a prudent, yet accelerated growth strategy for its
iodine production operations. This has been achieved with the opening of new
iodine production plants in the Central Oklahoma core area, including the most
recent IOsorb® plant in July 2025. As part of our ongoing growth strategy,
the Board expects construction of a new iodine plant to commence before the
calendar year-end.
Expansion requires proper financing and planning. The Group's balance sheet
remains strong, and Iofina has a banking partner with credit lines in place to
support our growth intentions. Iodine prices remained robust and increased
year-over-year. Iofina has strategically expanded its crystalline iodine
production customer base to ensure sales of the increased iodine production
and cash flow for the Group.
Additionally, as recently disclosed to the market, Iofina Chemical and Iofina
Resources received a total of approximately $1.8m net ERTC credits, before
tax. These qualified US tax credits were retained as a result of employee
retention during COVID-19, where the Company experienced challenges.
As the Group expands, operational improvements and a focus on safety remain
top priorities. The Group has expanded its sourcing team in the Period to
ensure proper cost control and timely receipt of goods. In the Period, the
Group experienced no lost-time incidents ('LTI'), although IC did have one
minor LTI post-Period. Iofina is proud of its safety record and culture and
insists on continuous safety improvements, which require absolute attention
from all employees and partners.
The Group is proud of its H1 2025 performance. The outlook for the rest of
2025 and beyond is positive, with the Company expecting record production and
revenues in H2 2025. Our technology, which isolates a valuable resource from a
waste stream, is performing well. IR recently opened a new production plant in
July 2025. Future iodine production will be developed in the near term. IC
continues to develop new customers and products. Iodine prices are favourable
for the Company and market demand for iodine, especially in x-ray contrast
applications, is expanding. By continuing to execute our business goals, the
Company is well-positioned for the future.
Iofina Resources
Iofina Resources ("IR") explores for and produces crystalline iodine in the
USA using Iofina's WET® IOsorb® technology. The Company extracts iodide from
brine water streams generated as by-products of oil and gas operations-a
process that would otherwise result in wasted iodine resources. This approach
not only maximises value for Iofina, its shareholders, and its partners in the
oil and gas sector but also ensures minimal environmental impact.
In H1 2025, IR achieved a company record by producing 305.5 metric tonnes of
crystalline iodine, representing a more than 10% increase compared to the same
period in the previous year, despite challenging winter conditions in Q1. IR
operated seven IOsorb® plants in Oklahoma and introduced an eighth facility
in July. Operations span two core regions: NW Oklahoma and Central Oklahoma,
with the three most recent plants situated in Central Oklahoma, a region
experiencing ongoing hydrocarbon development.
IR's growth initiatives continue as three Central Oklahoma IOsorb® plants
began production between June 2023 and July 2025. The newest facility, IO#11,
is currently meeting performance expectations. IR projects that the second
half of 2025 will yield the highest semi-annual iodine production in Company
history, targeting between 400-440 metric tonnes of crystalline iodine.
The IR exploration team remains dedicated to identifying new production sites,
both within current operational zones and in new areas. Efforts are ongoing to
work collaboratively with our brine suppliers to optimise brine availability
across all current plants. Contracting and planning for the next iodine
production site are progressing, with construction expected to begin before
the calendar year-end. Planning and sourcing for this next iodine production
plant have already begun.
Iofina Chemical
Iofina Chemical ("IC") is the specialty chemical subsidiary of the Group and
has been in business for over 40 years, producing a diverse array of
high-quality halogen-based chemicals for various growing industries, including
pharma, biocides, human and animal health, and many others. IC is a globally
recognised leader in the production of these halogen-based chemicals. The
Group continues to invest in IC to increase its capabilities to supply
customers with existing products and to develop new product offerings. In
addition to the halogen-based chemicals produced on-site at IC's facility in
Covington, Kentucky, IC is the Group's sole sales and commercial arm, selling
iodine directly to the market and processing all external sales for the Group.
Once again, IC achieved record first half sales for the Group, which were led
by sales of the Group's crystalline iodine. With intention, the IC sales team
has strategically expanded its sales of the Group's crystalline iodine to
additional global customers in line with increasing IR production. The top two
iodine-based derivatives in the Period were IPBC and Hydriodic acid. Hydriodic
acid is used in various applications, including acetic acid manufacturing and
animal health applications. IPBC is a specialty fungicide and preservative
used in various industries, including paints, coatings, and cosmetics.
In the Period, IC began commercial sales of a new animal feed product
additive, primarily to end-users in North America. This product is expected to
become one of the top sales volume iodine derivative products for IC in 2025
and beyond. Expanding sales of both new and established iodine products
remains a critical performance metric as IR boosts crystalline iodine output.
IC continues to invest in R&D efforts to develop new products and improve
the synthetic processes of current offerings. Additionally, increased
marketing efforts have led to increased sales of small-volume, niche
iodine-based compounds with possible growth potential.
Additional initiatives at IC included enhancements to programmable logic
controls for improved process efficiency and safety, installation of a new
reaction vessel and controls for a non-iodine biocide, upgrades to iodine
delivery systems for animal feed production, and expansion of storage capacity
for iodine derivatives.
The diversity of IC's halogenated products (iodo-, chloro-, fluoro-) is key to
both the growth and the stability of the division. Additionally, the vertical
integration of iodine into iodine derivatives provides the Group and its
customers with stability of supply for the iodine-based compounds produced.
Iodine Market Outlook
Iodine has numerous applications, the largest being injectable iodinated
contrast media used in medical diagnostics. Demand for iodine in contrast
agents continues to rise, particularly in countries advancing their healthcare
infrastructure, and is expected to remain the major driver of iodine
consumption in the foreseeable future. Other significant uses include LCD
screens, pharmaceutical synthesis, and biocides.
During the Period, demand for the Group's crystalline iodine remained strong.
The iodine market expanded significantly in 2024, with continued, albeit
slower, growth anticipated in 2025. Global iodine consumption is expected to
approach 40,000 MT in 2025. Iodine prices (100% basis) in the spot markets
have remained stable and are firmly above $70/kg. The average prices realised
(100% iodine equivalent) by Iofina for its crystalline iodine during the
Period exceeded $74/kg. Pricing can vary depending on region, volume, and
application. The Board expects relative price stability through H2 2025.
IOFINA PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2025
Unaudited Audited
Six months ended Year ended
30 June 30 June 31 December
2025 2024 2024
Note $'000 $'000 $'000
Continuing operations
Revenue 29,166 25,977 54,465
Cost of sales (22,847) (20,780) (41,228)
Gross profit 6,319 5,197 13,237
Administrative expenses (3,042) (2,849) (5,670)
Depreciation and amortisation (1,513) (1,208) (2,610)
Operating profit 1,764 1,140 4,957
Other income
Government subsidies 4 1,808 - -
Profit before finance expense 3,572 1,140 4,957
Finance income 36 87 176
Interest payable (105) (143) (266)
Interest swap derivative asset (39) (23) (68)
Profit before taxation 3,464 1,061 4,799
Taxation - current tax (733) (111) (708)
Taxation - deferred tax (223) (343) (1,173)
Profit for the period attributable to owners of the parent $2,508 $607 $2,918
Earnings per share:
- Basic 5 $0.013 $0.003 $0.015
- Diluted 5 $0.013 $0.003 $0.015
30 June 30 June 31 December
2025 2024 2024
Adjusted EBITDA: 9 $'000 $'000 $'000
Profit before finance expense 3,572 1,140 4,957
Government subsidies (1,808) - -
Depreciation and amortisation 1,513 1,208 2,610
Adjusted EBITDA $3,277 $2,348 $7,567
IOFINA PLC
CONSOLIDATED BALANCE SHEET
30 JUNE 2025
Unaudited Unaudited Audited
30 June 30 June 31 December
2025 2024 2024
Note $'000 $'000 $'000
Intangible assets - 13 -
Goodwill 3,087 3,087 3,087
Property, plant & equipment 35,554 28,393 31,790
Term loan - interest swap asset 53 138 92
Total non-current assets 38,694 31,631 34,969
Inventories 11,424 9,408 10,060
Trade and other receivables 11,882 13,169 11,896
Government subsidies receivable 4 1,808 - -
Cash and cash equivalents 6,420 5,695 6,857
Total current assets 31,534 28,272 28,813
Total assets $70,228 $59,903 $63,782
Trade and other payables 10,753 9,299 10,800
Bank loans - due within one year 6 1,572 1,429 1,429
Tax payable 526 - -
Lease liabilities 144 152 160
Total current liabilities 12,995 10,880 12,389
Bank loans - due after one year 6 5,653 3,214 2,500
Lease liabilities 102 255 170
Deferred tax 1,155 102 932
Total non-current liabilities 6,910 3,571 3,602
Total liabilities $19,905 $14,451 $15,991
Issued share capital 7 3,107 3,107 3,107
Share premium 10 60,687 60,687 60,687
Share-based payment reserve 2,435 2,461 2,411
Retained losses (9,962) (14,859) (12,470)
Foreign currency reserve (5,944) (5,944) (5,944)
Total equity $50,323 $45,452 $47,791
Total equity and liabilities $70,228 $59,903 $63,782
IOFINA PLC
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
30 JUNE 2025
Share Share Share-based Retained Foreign Total
capital Premium payment losses currency equity
reserve reserve
$'000 $'000 $'000 $'000 $'000 $'000
Balance at 31 December 2023 (Audited) $3,107 $60,687 $2,367 $(15,467) $(5,944) $44,750
Share-based expense - - 123 - - 123
Share options forfeited - - (79) 79 - -
Total transactions with owners - - 44 79 - 123
Profit for the year attributable to owners of the parent - - - 2,918 - 2,918
Total comprehensive income attributable to owners of the parent - - - 2,918 - 2,918
Balance at 31 December 2024 (Audited) $3,107 $60,687 $2,411 $(12,470) $(5,944) $47,791
Share-based expense 24 24
Total transactions with owners 24 24
Profit for the period attributable to owners of the parent
2,508 2,508
Total comprehensive income attributable to owners of the parent
2,508 2,508
Balance at 30 June 2025 (Unaudited)
$3,107 $60,687 $2,435 $(9,962) $(5,944) $50,323
IOFINA PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2025
Unaudited Audited
Six months ended Year ended
30 June 30 June 31 December
2025 2024 2024
$'000 $'000 $'000
Cash flows from operating activities
Adjusted EBITDA 3,277 2,348 7,567
Share options expense 24 94 121
3,301 2,442 7,688
Changes in working capital
Trade and other receivables (increase)/decrease (14) 2,322 3,825
Inventories (increase)/decrease (1,364) 730 78
Trade and other payables (decrease)/increase (178) (635) 838
Net cash inflow from operating activities 1,745 4,859 12,429
Tax paid (net) (49) (110) (901)
Net cash inflow from operating activities after tax paid 1,696 4,749 11,528
Cash flows from investing activities
Interest received 36 87 177
Acquisition of property, plant & equipment (5,277) (4,727) (9,513)
Net cash outflow from investing activities (5,241) (4,640) (9,336)
Cash flows from financing activities
Bank project loan drawdowns 4,011 - -
Term loan repayments (714) (714) (1,429)
Interest paid (95) (129) (246)
Lease payments (94) (89) (178)
Net cash inflow/(outflow) from financing activities 3,108 (932) (1,853)
Net (decrease)/increase in cash (437) (823) 339
Cash and equivalents at beginning of period 6,857 6,518 6,518
Cash and equivalents at end of period $6,420 $5,695 $6,857
1. Nature of operations and general information
Iofina plc is the holding company of a group of companies (the "Group")
involved primarily in the exploration and production of iodine and the
manufacturing of halogen-based specialty chemical derivatives. Iofina's
principal business strategy is to identify, develop, build, own and operate
iodine extraction plants, with a current focus in North America, based on
Iofina's WET® IOsorb® technology. Iofina has current production operations
in the United States, specifically in Kentucky and Oklahoma. The Group has
complete vertical integration, from the production of iodine from produced
brine waters to the manufacture of the chemical end-products derived from
iodine and sold to global customers.
The address of Iofina plc's registered office is 48 Chancery Lane, London WC2A
1JF.
Iofina plc's shares are listed on the London Stock Exchange's AIM market.
Iofina's consolidated financial statements are presented in US Dollars, which
is the functional currency of the operating subsidiaries.
The figures for the six months ended 30 June 2025 and 30 June 2024 are
unaudited and do not constitute full statutory accounts. The comparative
figures for the year ended 31 December 2024 are extracts from the 2024 audited
accounts (which are available on the Company's website and have been delivered
to the Registrar of Companies) and do not constitute full statutory accounts.
The independent auditor's report on the 2024 accounts was unqualified and did
not contain statements under sections 498(2) or (3) (accounting records or
returns inadequate, accounts not agreeing with records and returns or failure
to obtain necessary information and explanations) of the Companies Act 2006.
2. Accounting policies
The basis of preparation and accounting policies set out in the Annual Report
and Accounts for the year ended 31 December 2024 have been applied in the
preparation of these condensed consolidated interim financial statements.
These interim financial statements have been prepared in accordance with the
recognition and measurement principles of the International Financial
Reporting Standards (UK adopted IFRS) that are expected to be applicable to
the consolidated financial statements for the year ending 31 December 2025 and
on the basis of the accounting policies expected to be used in those financial
statements.
The accounting policy in respect of government subsidies (Note 4) is based on
IAS20 as follows:
Government subsidies
Government subsidies are recognised when there is reasonable assurance that
the conditions attaching to them will be complied with and the subsidies will
be received. Subsidies related to income are recognised as part of profit or
loss under the heading 'Other income' or they are deducted from the related
expense. Subsidies are allocated to the periods in which related costs appear,
or in the event that they are compensation for costs already incurred they are
recognised in the period in which they become receivable.
Government subsidies relating to assets are presented in the balance sheet
either as deferred income or as a deduction from the carrying amount of the
asset. In both cases they are recognised in profit or loss over the useful
life of the assets to which they relate.
3. Segment reporting
(a) Business segments
The Group's operations comprise the exploration and production of iodine with
complete vertical integration into its specialty chemical halogen derivatives
business and are therefore considered to fall within one business segment.
Unaudited Audited
Six months ended 30 June 31 December
2025 2024 2024
Assets $'000 $'000 $'000
Halogen Derivatives and iodine 70,228 59,903 63,782
Total $70,228 $59,903 $63,782
Liabilities
Halogen Derivatives and iodine 19,905 14,451 15,991
Total $19,905 $14,451 $15,991
(b) Geographical segments
The Group reports by geographical segment. All the Group's activities during
the period were related to exploration for, and development of, iodine in
certain areas of the USA and the manufacturing of specialty chemicals in the
USA with support provided by the UK office. In presenting information on the
basis of geographical segments, segment assets and the cost of acquiring them
are based on the geographical location of the assets.
Unaudited Audited
Six months ended 30 June 31 December
2025 2024 2024
Total assets $'000 $'000 $'000
UK 244 99 232
USA 69,984 59,804 63,550
Total $70,228 $59,903 $63,782
Total liabilities
UK 326 187 258
USA 19,579 14,264 15733
Total $19,905 $14,451 $15,991
Capital expenditures
UK - - -
USA 5,277 4,727 9,513
Total $5,277 $4,727 $9,513
4. Government subsidies
The Group's two operating subsidiaries Iofina Chemical, Inc. and Iofina
Resources, Inc. received in July and August 2025 a net total of $1,808,175 in
respect of the US Government's Employee Retention Tax Credit scheme ('ERTC').
The scheme was set up under the CARES Act to provide financial relief to
eligible employers impacted by COVID-19, and takes the form of a refundable
tax credit applied to certain payroll costs incurred in 2020 and 2021. The
total received has been recorded as Other income in the Consolidated Statement
of Comprehensive Income in these financials in accordance with the Group's
accounting policy set out in Note 2, and is made up as follows:
$'000
ERTC Credits 1,659
Credit interest 274
Claim preparation fees (125)
Total $1,808
5. Earnings per share
The calculation of earnings per ordinary share is based on profits of
$2,507,459 (H1 2024: $607,003) and the weighted average number of ordinary
shares outstanding of 191,858,408 (H1 2024: 191,858,408). After including the
weighted average effect of share options of 4,592,900 (H1 2024: 5,000,400) the
diluted weighted average number of ordinary shares outstanding was 196,451,308
(H1 2024: 196,858,808).
6. Bank loans
Project loan Term loan Total
$'000 $'000 $'000
At 31 December 2023 - 5,356 5,356
Term loan instalment repayments - (1,429) (1,429)
At 31 December 2024 - 3,927 3,927
Project loan drawdowns 4,011 - 4,011
Term loan instalment repayments - (714) (714)
At 30 June 2025 $4,011 $3,213 $7,224
Due within one year 143 1,429 1,572
Due after one year 3,868 1,784 5,652
$4,011 $3,213 $7,224
Bank facilities are with First Financial Bank of Ohio, are fully secured by
fixed and floating charges, and the principal terms are:
Term loan
a) The term loan balance of $3.2m (H1 2024 $4.6m) relates to a $10.0m loan
drawn down in September 2020 and repayable in full by equal monthly
instalments over the seven years to 30 September 2027. The interest rate on $7
million of the loan has been fixed to maturity by a swap contract at 3.99%,
and the interest rate on the balance is variable monthly at 2.50% above the
one month Secured Overnight Financing Rate ("SOFR"), subject to a minimum SOFR
rate of 1.00%. Repayment of all or part of the loan may be made at any time
without penalty.
Revolving loan facility
b) There is a revolving loan facility of $6.0m over the period to 31 December
2026, which may be drawn and repaid in variable amounts at the Group's
discretion. Amounts that may be drawn are subject to a borrowing base of
sufficient eligible discounted monthly values of receivables and inventory.
The interest rate is variable monthly at 2.11% above SOFR, subject to a
minimum SOFR rate of 1.00%. No amounts were drawn and outstanding at 30 June
2025.
Project loan facilities
c) The project loan facility balance of $4.01m represents drawings against a
facility of up to $10 million which anticipates phased drawdowns to fund
construction and other capital expenditure on plants IO#10, IO#11 and IO#12.
The drawdown period runs from September 13, 2024 through to March 13, 2026,
and a seven-year term with even monthly repayments begins from March 13, 2026.
The interest rate is 2.25% above SOFR (1 month Secured Overnight Financing
Rate) subject to a minimum SOFR rate of 1%. Repayment of all or part of the
loan may be made at any time without penalty.
Bank covenants
d) Compliance in respect of all amounts outstanding in respect of the above
facilities is required on a quarterly basis in respect of trailing 12 months
financial covenant ratios of 1) a maximum multiple of 2.5 total debt to
EBITDA, and 2) a minimum multiple of 1.2 EBITDA net of unfinanced capital
expenditure, dividends and cash taxes to the total of principal and interest
payments on the total debt.
7. Share capital
Unaudited Unaudited Audited
30 June 30 June 31 December
2025 2024 2024
Authorised:
Ordinary shares of £0.01 each
-number of shares 1,000,000,000 1,000,000,000 1,000,000,000
-nominal value £10,000,000 £10,000,000 £10,000,000
Allotted, called up and fully paid:
Ordinary shares of £0.01 each
-number of shares 191,858,408 191,858,408 191,858,408
-nominal value £1,918,584 £1,918,584 £1,918,584
8. Share based payments
No share options were granted or lapsed or were forfeited or exercised during
the six months to 30 June 2025. There were 5,677,100 total options outstanding
at 30 June 2025 representing 2.96% of shares in issue.
9. Adjusted EBITDA
Management uses certain non-IFRS performance measures to assess performance of
the Group, and considers them to provide useful supplementary information to
the IFRS results. EBITDA is profit before finance expense adjusted to exclude
depreciation and amortisation, and Adjusted EBITDA additionally excludes
exceptional items of non-recurring income and expense. Management considers
that this latter measure provides a fair representation of the period's
underlying operating results. A reconciliation to Operating Profit is set out
below the Consolidated Statement of Comprehensive Income.
10. Capital reduction
The balance on the Company's share premium account of $60.7m was cancelled as
of 10 July 2025 in accordance with section 648 of the Companies Act 2006. The
amount of the balance will be used to offset the parent company's retained
losses (30 June 2025: $25.4m) and thereby create distributable reserves.
11. Cautionary Statement
This report contains certain forward-looking statements with respect to the
financial condition, results of operations and businesses of Iofina plc. These
statements are made by the directors in good faith based on the information
available to them up to the time of their approval of this report. However,
such statements should be treated with caution as they involve risk and
uncertainty because they relate to events and depend upon circumstances that
will occur in the future. There are a number of factors that could cause
actual results or developments to differ materially from those expressed or
implied by these forward-looking statements. Nothing in this announcement
should be construed as a profit forecast.
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